Foreclosure timelines continue to increase, thanks in part of the recent robosigning allegations and related moratoria, according to the September Mortgage Monitor report released by Lender Processing Services.
The average number of days mortgages are delinquent in five judicial states (New York, Florida, New Jersey, Hawaii and Maine) now exceeds 500 days.
Judicial foreclosures generally take longer to process because they are handled through the courts, and we all know how that goes…
As of the end of September, nearly a third of 90 day + delinquencies could be categorized as “extremely delinquent,” meaning the borrower hasn’t made mortgage payments for 12 months or more.
“The average days delinquent for loans in the 90-days-or-greater delinquency category is 316 days, and the average loan in foreclosure has not had a payment made in 484 days, or roughly 16 months,” LPS said in a press release.
Clearly this is costing the banks, and once these homes are lost, the shadow inventory will be that much bigger, and home prices will come under even more downward pressure.
Last month, 275,000 loans started foreclosure, but delinquencies fell 7.8 percent from a year earlier.
And 1.13 million loans that were current at the beginning of the year are now at least 60 days delinquent or in foreclosure.
Nationwide, more than 4.3 million loans are at least 90 days delinquent or in foreclosure.